How to be hedged - the mechanics!

I am a strategic trader (not investor) which means I rarely enter into a trade where I perceive the probability of profit (POP) being 50/50. Buying a asset or selling a asset is hovering around 50/50, therefore employing a gamma of techniques which gives you a mathematical and statistical improvement on the 50/50 bet is the optimal solution. If you are a trader you have a lot of slippage (costs) therefore entering a 50/50 bet net-net you lose over time, however investors don't reside in the same wheelhouse. You buy and hold like Warren Buffet watching the years go by and letting inflation to it's thing. Techniques to employ to improve your POP as an investor can be daunting, options are one of the solutions but we’ve all heard that buying options is senseless because 90% of options expire worthless ??. In fact this statement is ambiguous because only 10% of option contracts are exercised. I rarely hold any options to expire probably less that 0.01% of the time. Statistically only 10% of option contracts are exercised, 55%-60% are traded prior to expiration, 30%-35% expire out-of-the-money. YouTube Video

The Manager, Fidelibus Lucrum, Pooled Investment Club.